Closing Gold & Silver Market Report – 4/5/2012
Craig C. Calvin
4/5/2012 4:03:00 PM
BARGAIN HUNTERS BOOST GOLD, SILVER PRICES; EUROZONE FEARS FLARE UP
Bargain hunters took advantage of lower prices for Gold and Silver today, helping both metals to end the day in positive territory. After signs from the Federal Reserve yesterday indicating that another round of quantitative easing is unlikely soon, precious metals prices dipped. However, some analysts are now saying that the Fed’s current policy can still support Gold prices, even without more easing. In a recent report, James Steel of banking giant HSBC said, “Policy is already ultra-accommodative by conventional monetary standards, and therefore Gold-friendly. This may be overlooked or underestimated in the current sell-off, we believe.”
As concerns over debt issues in Europe flared again today, stocks in the U.S. plummeted. The Standard & Poor’s 500 index saw its largest weekly fall so far for the year, after reaching its highest point in nearly three years at the beginning of this week. Portfolio strategist Greg Woodard with Manning & Napier said, “The volatility is going to continue. It’s going to be choppy. The trend seems to be improvement in the U.S. and continued difficulties outside the U.S.”
Greece is back in the news today, as concerns are growing that Greece could decide to pay out on the bonds being retained by holdouts who were not participants in last month’s debt swap deal, rather than face lawsuits if Greece defaults on those bonds. Yesterday, the Greek Finance Ministry gave another extension to the deadline for bondholders to agree to participate in a swap for securities worth about one-fourth of the value of the original bonds. Greece has given no indication what action it might take should those investors continue to abstain from the swap agreement.
At 4 p.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,632.50 – Up $17.90.
- Silver - $31.79 – Up $0.69.
- Platinum - $1,607.80 – Up $10.20.
- Palladium - $646.80 – Up $13.10.
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
